.......................................155.6128.11.925.618.5930858117314232San Francisco...........................462.6405.85.051.841.13233065212699All districts...........................3,176.02,763.438.7373.9243.110,0039,2811,9962,7522,010 Number of banks with loans to— i Amounts represent financing of the purchase of new and used mobile homes (direct loans and purchased paper) included in Schedule A of the Call Report of Condition, as part of the following:(a) Item 6 (c), “Loans to individuals to purchase other retail consumer goods,” (consumer instalment loans);(b) Item 4, “Loans to farmers”; and (c) Item 5, “Commercial and industrial loans,” (business purchases).

total.Bank financing of mobile homes for busi nesses covers a wide variety of purposes, but

about two-thirds of this credit was used for

financing retailers’ inventories of mobile

homes. The remainder was scattered among

loans to finance the purchase of mobile units

for such uses as engineering headquarters or

storage at construction sites, temporary

banking and school facilities, and interim

office space at new or expanding factories.Replies to the Call Report questionnaire

indicated that, as a group, banks making

mobile home loans to individuals were

also active in other types of instalment lend ing to consumers. These banks accounted

for about four-fifths of all consumer instal ment credit outstanding at commercial banks

and for an even larger proportion of non automotive consumer goods credit, in which

mobile home loans are classified.Banks with large instalment loan port folios—$50 million or more—held more

than one-third of the mobile home loans

outstanding, even though building codes or

zoning restrictions often prevent the use of

mobile homes in large cities or metropolitan

areas (Table 2). Banks having less than $20

million in instalment loans held one-half of

the mobile home total, about equally divided

between banks in the $5 million to $20 mil lion class and banks with less than $5

million. The under-$20-million groups,

which include few large city banks, also

provide nearly three-fifths of all floor-plan

financing of dealer inventories.Consumers’ indebtedness to banks on

mobile homes accounted for a substantial

part of the nonautomotive consumer goods

total—nearly one-half for banks that were

financing mobile homes, and about two-

fifths for all commercial banks (Table 3).

The proportion for banks with mobile home

March 1971

BANK FINANCING OF MOBILE HOMES181

TABLE 2DISTRIBUTION OF MOBILE HOME LOANS

OUTSTANDING AT COMMERCIAL BANKS

In per centSize category (in millions of dollars)Loans to individualsFloorplanloansA. Total instalment loans:Under 5...............................................2527520......................................................24312050....................................................161750 and over.........................................3525All size groups................................100100B. Total deposits:Under 10.............................................910_25 ..................................................142550....................................................1550100..................................................9100500................................................255001,000............................................121,000 and over

...................................

16All size groups

................................

100

credit was somewhat larger than the average

in four Federal Reserve districts—New

York, Philadelphia, Atlanta, and Chicago—

and considerably smaller—less than 30 per

cent—in the Dallas District.Bank holdings of mobile home credit at

the end of June 1970 varied widely among

the 12 districts. The Atlanta, Chicago, and

San Francisco Districts had the largest

shares, and together they accounted for

nearly one-half of all bank loans outstanding

to consumers for mobile homes. The Boston

and Minneapolis Districts had the smallest

holdings, each with only 3 per cent of the

U.S. total; the Dallas District held only 5

per cent even though it included Texas, one

of the top 10 States in amount of mobile

home credit outstanding. Approximately

one-third of all mobile home loans outstand ing were in four States—California, Pennsyl vania, Florida, and Michigan (Table 4,

page 182). About 3,000 of the 10,000banks financing mobile homes were located

outside of Standard Metropolitan Statistical

Areas, but the mobile home paper they held

represented about two-thirds of the total

for all banks in the United States.

TABLE 3IMPORTANCE OF MOBILE HOME CREDIT

OUTSTANDING IN CONSUMER CREDIT

TOTALS AT COMMERCIAL BANKS

In per centFederal Reserve district>■5'At all banks, relative to— At banks with mobile home credit, relative to— Totalinstal-mentcredit Nonauto-motivegoodscreditTotalinstal-mentcredit Nonauto-motivegoodscredit439547330754Philadelphia

.....................

6509555466496406459471051739950843846Minneapolis

.....................

627840Kansas City

.....................

742847426529San Francisco..................643644All districts

..................

640747

Note.—

Figures for mobile home credit in this table represent consumer instalment loans outstanding for purchase of mobile homes.